Michigan Veteran Property Tax Relief Programs and Exemptions

Michigan offers a full property tax exemption on your principal residence if you have a 100% service-connected disability rating from the Department of Veterans Affairs. This exemption is authorized under MCL 211.7b and applies to your city, township, county, and school taxes not just a portion of the bill. Your un-remarried surviving spouse may also keep this benefit after your death.

What property tax relief programs can Michigan veterans use?

Michigan doesn't have a tiered exemption system like some states. The main programs available to veterans include:

100% Disabled Veteran Property Tax Exemption (MCL 211.7b) Eliminates property taxes on your homestead entirely if you have a 100% VA service-connected disability rating.
Michigan Homestead Property Tax Credit Income-based relief available to all qualifying homeowners and renters, including veterans. Filed with your state income tax return.
Poverty Exemption (MCL 211.7u) Available to low-income property owners regardless of veteran status, applied for through your local assessor.
Principal Residence Exemption (PRE) Reduces your tax burden by exempting your home from school operating millage. All homeowners can apply, but veterans living in their primary home should make sure it's on file.

If you're comparing how other states handle this, Florida's homestead exemption for disabled veterans works on a sliding scale based on your disability percentage, while Michigan gives a full exemption only at the 100% level.

Who qualifies for the Michigan disabled veteran property tax exemption?

To qualify under MCL 211.7b, you must meet all of the following:

You are a veteran of the U.S. Armed Forces.
You have a 100% service-connected disability rating from the VA.
The property is your principal residence (homestead).
You occupy the home as your primary dwelling.

The exemption covers all property taxes county, city or township, school, and special assessments. It is not a partial reduction. If your home is assessed at $150,000 and your total millage rate is 35 mills, this exemption saves you roughly $5,250 per year.

Michigan's approach is more limited than states with graduated exemptions. Nevada's veteran property tax abatement, for example, offers partial relief at lower disability levels. In Michigan, you need the full 100% rating to qualify for the exemption.

Can a surviving spouse of a veteran get this exemption?

Yes. If a veteran who qualified for the MCL 211.7b exemption dies, their un-remarried surviving spouse can continue to receive the exemption on the same homestead. The spouse does not need to have a disability themselves. They must, however, maintain the property as their principal residence and not remarry.

Michigan's surviving spouse provisions are fairly standard compared to other states. Wisconsin also provides tax relief to surviving spouses of veterans, though the structure and eligibility rules differ.

How do I apply for the Michigan veteran property tax exemption?

You apply through your local city or township assessor's office, not through the state or the VA. Here's the process:

Get your VA disability rating letter. This is the document that proves your 100% service-connected disability. You can request it from the VA or download it through VA.gov.
Obtain the application form. Most assessors use the State Tax Commission form 5107 (Affidavit for Disabled Veterans Exemption) or a local equivalent. Contact your assessor to get the right form.
Submit the application with documentation. Include your VA rating letter, proof of property ownership, and proof of residency.
File before the deadline. Applications are generally due by the Board of Review meeting in March, though some jurisdictions accept late filings under certain circumstances.

You typically only need to apply once, but your assessor may ask for updated verification periodically. If your VA disability rating changes or you move to a new home, you'll need to refile.

What documents do I need to file?

Bring or attach the following when you submit your application:

VA Disability Rating Letter showing a 100% service-connected disability
DD-214 or other proof of military service
Proof of ownership (deed, land contract, or tax statement)
Proof of residency (Michigan driver's license, voter registration, or utility bills with your address)
Completed application form (Form 5107 or local equivalent)

If you're filing as a surviving spouse, you'll also need the veteran's death certificate and proof that you have not remarried.

Is the homestead property tax credit the same as the disabled veteran exemption?

No. These are separate programs that serve different purposes:

The disabled veteran exemption (MCL 211.7b) removes property taxes entirely from your tax bill. Your local assessor processes it.
The homestead property tax credit (MI-1040CR) is a refund based on your income. You file it with your Michigan state income tax return. It caps your property tax burden as a percentage of your income.

You can potentially benefit from both. If you don't qualify for the full exemption (your disability rating is below 100%), the homestead property tax credit may still reduce your out-of-pocket property tax cost. The credit is available to homeowners and renters with household resources under roughly $66,000 (the threshold adjusts slightly each year).

Michigan treats these as credits rather than exemptions an important distinction. Maryland's comparison of tax credits versus exemptions explains the difference in more detail if you want to understand how these mechanisms work across states.

What if my disability rating is less than 100%?

You do not qualify for the MCL 211.7b exemption with a rating below 100%. This is one of the most common points of frustration for Michigan veterans. Here are your alternatives:

Homestead Property Tax Credit Income-based relief that doesn't depend on disability status.
Poverty Exemption If your income and assets are low enough, your local Board of Review may grant a full or partial exemption.
Hardship appeal You can petition your local Board of Review to consider your circumstances, though success varies by jurisdiction.

If your condition worsens and your rating increases to 100%, you can apply for the exemption at that point. Michigan does not have a partial exemption tied to disability percentage it's all or nothing.

What are the most common mistakes veterans make?

Several recurring errors cost Michigan veterans money or delay their relief:

Not filing the application at all. The exemption is not automatic. Even if you clearly qualify, you must submit paperwork to your assessor.
Missing the March Board of Review deadline. While some assessors are flexible, the formal deadline matters. Call your assessor in January or February to confirm dates.
Confusing the exemption with the homestead tax credit. They're different programs filed in different places.
Failing to update after moving. The exemption attaches to your principal residence. If you buy a new home in Michigan, you must refile with the new assessor.
Letting the Principal Residence Exemption lapse. If you moved and didn't file the correct form, your PRE might not be on record, which can affect your tax bill even if the veteran exemption is in place.
Assuming agricultural land is covered. The exemption applies to your homestead, not to separate parcels of farmland. If you own agricultural property, different rules may apply depending on the state.

Does the exemption cover special assessments?

The MCL 211.7b exemption covers ad valorem property taxes taxes based on your property's assessed value. It does not cover special assessments for things like road improvements, sewer connections, or drainage projects. Special assessments are charges for specific local improvements and are treated differently from regular property taxes under Michigan law.

How does this affect my mortgage escrow?

If your lender collects property taxes through an escrow account, the exemption should bring your escrow balance down significantly. Once the exemption is approved:

Notify your mortgage servicer that your property taxes have been reduced to zero.
Request an escrow analysis so your monthly payment adjusts.
Watch for a refund of any overpaid escrow balance.

Some servicers are slow to adjust automatically. Call them directly rather than waiting for an annual review.

Can I get a refund for taxes I already paid?

If you were eligible for the exemption but didn't file in time, you may be able to petition for a refund of taxes paid. Michigan law allows retroactive corrections in some cases, typically through the Michigan Tax Tribunal or by working with your local Board of Review. The process is not guaranteed, and it's easier to file on time than to chase a refund later.

What if my application is denied?

If your assessor denies your application, you can appeal to the local Board of Review during its March, July, or December sessions. If the Board of Review upholds the denial, you can appeal to the Michigan Tax Tribunal. Keep copies of all documentation and request the denial reason in writing so you can address the specific issue.

Useful next steps checklist

Confirm your VA disability rating is currently listed at 100% service-connected.
Download or request your VA rating letter from VA.gov.
Find your local city or township assessor's office and ask for the disabled veteran exemption application.
Gather your DD-214, deed or proof of ownership, and proof of Michigan residency.
Submit your application before the March Board of Review deadline.
If you're a surviving spouse, verify you have the veteran's death certificate and can confirm you have not remarried.
After approval, contact your mortgage servicer to adjust your escrow payment.
If you don't qualify at 100%, apply for the Michigan Homestead Property Tax Credit with your state income tax return as an alternative form of relief.
Refile if you move to a new home in Michigan the exemption does not transfer automatically.